Declaration of Submission to Enforcement – What Is It and How Does It Secure a Loan Agreement?

In legal transactions, a statement of submission to enforcement is one of the tools that provide the creditor with a faster and more effective way to pursue their claims. It is particularly common in loan agreements, where both parties aim to minimize the risk associated with potential non-repayment of the debt. In this article, we explain what a statement of submission to enforcement is and its significance in the context of a loan agreement.

What is a Statement of Submission to Enforcement?

A statement of submission to enforcement is a document in which the debtor voluntarily agrees to enforcement proceedings being conducted against them by a bailiff in the event of non-repayment of their debt. In Poland, this legal instrument is regulated by the Code of Civil Procedure, specifically in Article 777 § 1 points 4–6.

What Are the Benefits of a Statement of Submission to Enforcement?

The primary advantage of this document is the acceleration of the enforcement process. With such a statement, the creditor does not need to go through lengthy court proceedings to obtain an enforcement title. Instead, they only need to submit an application for an enforcement clause to be granted by the court. Once obtained, the creditor can directly initiate enforcement proceedings with a bailiff.

When Is a Statement of Submission to Enforcement Used?

A statement of submission to enforcement is most commonly used in loan agreements, but it is also applicable in other civil-law contracts, such as lease or tenancy agreements. It is important that the statement precisely defines the scope and subject matter of the obligations that may be subject to enforcement.

How Is a Statement of Submission to Enforcement Prepared?

According to formal requirements, a statement of submission to enforcement must be drawn up in the form of a notarial deed. A notary public not only verifies the identity of the person making the statement but also ensures that the document meets all legal and formal requirements. This gives the statement legal validity, making it an enforceable title.

Summary

A statement of submission to enforcement is an effective means of securing creditors' interests in the enforcement of claims under a loan agreement. It facilitates and speeds up the enforcement process by eliminating the need for prolonged court proceedings. It is essential to carefully consider its preparation and ensure compliance with applicable legal regulations, preferably with the assistance of a notary.

If you have any questions about a statement of submission to enforcement or need help drafting one, feel free to contact our notary office.